HB 3489
Imposes a severance tax on owners of timber harvested from public or private forestland.
Jurisdiction
Oregon
Session
2025 Regular Session
At the request of
(at the request of former Representative Paul Holvey)
Committee
Revenue
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Sign in to take actionPublic sentiment
Support
38%
Oppose
62%
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Bill overview
This bill proposes a new severance tax on timber harvested from public and private forestland in Oregon. It aims to repeal existing forest product harvest taxes, abolish several related committees and funds (including the Emergency Fire Cost Committee and the Oregon Forest Land Protection Fund), and make changes to the cost of fire protection in forest protection districts. The tax rates will vary based on the acreage of forestland owned, with higher rates for larger holdings. Finally, the bill refers the entire measure to the voters for approval or rejection.
Key provisions
- Imposes a severance tax on timber harvested from public and private forestland, with rates based on forestland acreage.
- Repeals all current forest product harvest taxes.
- Abolishes the lot surcharge, the Emergency Fire Cost Committee, and the Oregon Forest Land Protection Fund.
- Modifies the cost of fire protection within forest protection districts.
- Establishes a Wildfire Management Fund to receive severance tax revenue.
- Requires voter approval for the entire bill.
- Defines key terms such as ‘common ownership’ and ‘pond value’ for tax calculation.
- Excludes the first 25,000 board feet of timber from the tax.
Who is affected
- Timber Owners (private and public forestland)
- Forest Protection Districts
- Oregon Residents
- State Government (through funding changes)
- Forestry Industry
Notable changes
Sponsors
Official sponsors from legislative records.
Primary sponsor
Cosponsor
Arguments in favor
Reasons to support this legislation.
Supporters of the proposed legislation advocate for reinstating a timber severance tax to generate revenue for wildfire prevention and community resilience, while promoting fairness and equity in tax policy. They argue that large timber companies, particularly REITs, are not contributing enough to the cost of protecting their private lands from wildfires, despite making significant profits. The bill aims to address the exploitation of Oregon's forests, support rural communities, and promote better practices for timber use without increasing taxes on small businesses. By reinstating a fair tax on timber, supporters believe that revenue can be allocated towards essential services, including wildfire suppression and forest management efforts, ultimately benefiting both the environment and local residents.
Source: Testimony Summaries
Arguments opposed
Reasons to oppose this legislation.
Opponents of House Bill 3489 express concerns that the proposed severance tax on timber harvesting will disproportionately affect rural Oregon residents and their forestry industry, which is crucial to the state's economy. They argue that the measure will exacerbate the economic decline of rural Oregon by increasing regulatory burdens on the forestry industry and unfairly target and harm rural residents who rely on the forestry industry for their livelihoods. Additionally, opponents contend that the bill's allocation of tax monies undermines current wildland firefighting infrastructure and eliminates funding for the Oregon Forestry Research Institute (OFRI), which would disproportionately affect small woodland owners.